Will Target's E-Commerce Initiatives Help Turn Its Business around?
It has been over a year since Target ventured into e-commerce to stay on par with Wal-Mart in the online shopping arena. The journey has not been easy for Target given Wal-Mart’s vigorous growth, the acquisition of Jet.com and the new team of seasoned e-tailing executives hired by the company. Wal-Mart has been hitting the news with new initiatives such as associate delivery program and pickup discounts, which were enforced to tackle e-tail giants such as Amazon. Although Target does have a strong presence in the landscape, its efforts to keep up with the competition have still not garnered much success. But, the strategies implemented by the company could have positive effects on its financials in the long haul.
Target is currently working on its omnichannel business model and is planning to invest extensively in enchasing store experiences, launching new exclusive brands and growing its digital vertical. To compete with Amazon Prime and Wal-Mart’s free shipping, the company has introduced online shopping offerings such as next-day delivery and Target Restock. The firm also launched ‘Wallet’—a mobile payment system¬¬ integrated with Target’s app. The new feature allows shoppers in-store to check out with their smartphone and use the digital cartwheel application to redeem points and discounts through barcode scans. The Cartwheel app in itself showed tremendous results having over 27 million subscribers within three years. In the digital forefront, the company introduced 360-degree shoppable rooms, a virtual showroom to enhance user experience while buying furniture.
Over the last year, these initiatives have helped Target grow and expand both offline and online business. While the company is yet to see a financial development, it believes that these investments will be substantial for long-term benefits.